ex991.htm

News Release

Trustmark Corporation Announces First Quarter 2009 Financial Results

and Declares $0.23 Quarterly Cash Dividend

Jackson, Miss. – April 28, 2009 – Trustmark Corporation (NASDAQ:TRMK) announced net income available to common shareholders of $23.4 million in the first quarter of 2009, which represented basic earnings per common share of $0.41. Trustmark’s first quarter 2009 net income produced a return on average tangible common equity of 14.46% and a return on average assets of 1.10%. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per common share. The dividend is payable June 15, 2009, to shareholders of record on June 1, 2009.

Richard G. Hickson, Chairman and CEO, stated, “Trustmark continued to achieve solid financial results during the first quarter as reflected by expanded net interest income, growth in noninterest income, prudent expense management and enhanced capital strength. While the financial services industry continues to address the challenges of the current economic environment and the resulting slowdown in residential real estate, Trustmark remains well-positioned to meet the needs of customers across our four-state franchise. Our strong balance sheet and capital base continue to provide the financial flexibility necessary to succeed in an ever-changing marketplace.”

Credit Quality

·	Net charge-offs during the first quarter totaled $11.4 million, or 0.66% of average loans

·	Provision for loan losses totaled $16.9 million, exceeding net charge-offs by $5.5 million

Total nonaccrual loans increased $20.5 million during the first quarter of 2009 to $134.5 million, or 1.94% of total loans, due primarily to Florida residential real estate loans which were reserved for or written-down to net realizable value. Other real estate increased $3.6 million during the quarter. Collectively, total nonperforming assets increased $24.0 million during the first quarter to represent 2.53% of total loans and other real estate. Managing credit risks resulting from current real estate market conditions continues to be a primary focus of the Corporation.

Net charge-offs totaled $11.4 million during the first quarter principally resulting from Florida residential real estate net charge-offs of $6.9 million and $2.4 million in net charge-offs from the Corporation’s indirect auto portfolio. Losses were minimal in other geographic areas and lines of business. During the first quarter, the provision for loan losses totaled $16.9 million, exceeding net charge-offs by $5.5 million, including $3.8 million above net charge-offs in Florida. Allocation of Trustmark’s $100.4 million allowance for loan losses represented 1.95% of commercial loans and 0.73% of consumer and home mortgage loans, resulting in an allowance to total loans of 1.51%.

Enhanced Capital Strength

·	Internally generated tangible common equity increased $61.8 million from prior year

·	Tangible common equity to tangible assets expanded to 7.20%

·	Total risk-based capital increased to 15.28%

A solid capital base has never been more important. Trustmark’s consistent profitability and sound capital management philosophy are reflected in expansion of tangible common equity to $680.9 million at March 31, 2009. During the first quarter, the Corporation’s common dividend payout ratio represented approximately 56% of earnings. Based upon the existing capital base and continued profitability going forward, Trustmark remains confident at this time in the sustainability of its cash dividend to common shareholders. Trustmark’s total risk-based capital of 15.28% significantly exceeds “well-capitalized” standards and supports the expansion of financing opportunities across the markets served by the Corporation. Excluding the $215 million in Senior Preferred stock issued under the Capital Purchase Program, Trustmark’s total risk-based capital ratio is an estimated 12.14%, exceeding guidelines to be classified as “well-capitalized” at March 31, 2009.

Balance Sheet Management

·	Reduced exposure to indirect auto lending

·	Mortgage banking production totaled $653.3 million, up 114% from prior quarter

·	Total deposits increased $333.1 million, or 4.9%, from prior quarter

Loans held for investment declined $81.8 million during the first quarter due in large measure to a $71 million reduction in the Corporation’s indirect auto portfolio. During 2008, Trustmark exited indirect auto lending through dealerships as a result of limited profitability over the last five years due to lower loan pricing and financial industry consolidation to a few participants. While current economic conditions are reflected in decreased demand for commercial and industrial lending, the low interest rate environment favorably impacted mortgage banking production, which more than doubled from the prior quarter to $653.3 million. Trustmark’s deposit base expanded to $7.2 billion during the first quarter, reflecting a $333.1 million increase relative to the prior quarter due in part to increased CDs as well as growth in public funds. Noninterest bearing deposits represented 21.0% of the Corporation’s total deposits at March 31, 2009.

Net Interest Income

·	Net interest income expanded to $90.9 million (FTE)

·	Stable net interest margin of 4.18%

Average earning assets increased $343.2 million during the first quarter, principally due to growth in investment securities. Decreased funding costs offset by declining asset yields resulted in a stable net interest margin of 4.18% and an expansion in net interest income to $90.9 million (FTE) during the first quarter.

Noninterest Income

·	Mortgage Banking income increased to $10.9 million

·	Insurance revenue expanded to $7.4 million

Noninterest income totaled $43.0 million during the first quarter of 2009, an increase of $4.7 million from the prior quarter. Mortgage Banking income during the quarter totaled $10.9 million, reflecting consistent mortgage servicing income as well as gains from loan sales. Trustmark also successfully managed interest rate volatility through hedging programs for the Corporation’s mortgage servicing asset. Insurance revenue during the first quarter totaled $7.4 million, an increase of $639 thousand from the prior quarter resulting from seasonal increases in commercial insurance commissions. Wealth management revenue totaled $5.6 million during the first quarter, a decrease of $1.0 million from the prior quarter, reflecting a reduction in assets under management resulting from declining stock market valuations.

Disciplined Expense Management

·	Core noninterest expense remained well-controlled

·	Efficiency ratio improved to 55.56%

In the first quarter of 2009, noninterest expense totaled $74.4 million, an increase of $2.9 million relative to the prior quarter. The increase was attributable to higher FDIC deposit insurance premiums, loan expenses and seasonal factors related to employee benefits. Ongoing human capital management initiatives and continued awareness of expense management across the organization are reflected in the Corporation’s efficiency ratio of 55.56% during the first quarter.

ADDITIONAL INFORMATION

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 29 at 10:00 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 627-6580, passcode 5354118 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, May 6, 2009 in archived format at the same web address or by calling (888) 203-1112, passcode 5354118.

Trustmark is a financial services company providing banking and financial solutions through over 150 offices and 2,600 associates in Florida, Mississippi, Tennessee and Texas.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, local, state and national economic and market conditions, including the extent and duration of the current volatility in the credit and financial markets, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract non-interest bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions and monetary and other governmental actions designed to address the level and volatility of interest rates and the volatility of securities, currency and other markets, the enactment of legislation and changes in existing regulations, or enforcement practices, or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that effect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of Trustmark’s borrowers, changes in Trustmark’s ability to control expenses, changes in Trustmark’s compensation and benefit plans, greater than expected costs or difficulties related to the integration of new products and lines of business, natural disasters, acts of war or terrorism and other risks described in Trustmark’s filings with the Securities and Exchange Commission.

Although Management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Trustmark undertakes no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

Trustmark Contacts:
Investors:	Louis E. Greer	Joseph Rein
	Treasurer and	First Vice President
	Principal Financial Officer	601-208-6898
	601-208-2310

Media:	Melanie A. Morgan
	Senior Vice President
	601-208-2979

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

MARCH 31, 2009

($ in thousands)

(unaudited)

										Linked Quarter						Year over Year
QUARTERLY AVERAGE BALANCES	3/31/2009			12/31/2008			3/31/2008			$ Change			% Change			$ Change			% Change
Securities AFS-taxable	$	1,505,328		$	1,226,843		$	353,079		$	278,485			22.7	%	$	1,152,249			n/m
Securities AFS-nontaxable		43,429			40,708			36,241			2,721			6.7	%		7,188			19.8	%
Securities HTM-taxable		178,417			169,958			189,604			8,459			5.0	%		(11,187	)		-5.9	%
Securities HTM-nontaxable		67,308			71,843			81,559			(4,535	)		-6.3	%		(14,251	)		-17.5	%
Total securities		1,794,482			1,509,352			660,483			285,130			18.9	%		1,133,999			n/m
Loans (including loans held for sale)		6,981,921			6,908,296			7,177,233			73,625			1.1	%		(195,312	)		-2.7	%
Fed funds sold and rev repos		15,988			22,871			22,921			(6,883	)		-30.1	%		(6,933	)		-30.2	%
Other earning assets		40,485			49,197			36,958			(8,712	)		-17.7	%		3,527			9.5	%
Total earning assets		8,832,876			8,489,716			7,897,595			343,160			4.0	%		935,281			11.8	%
Allowance for loan losses		(97,986	)		(91,802	)		(80,998	)		(6,184	)		6.7	%		(16,988	)		21.0	%
Cash and due from banks		239,508			223,774			259,392			15,734			7.0	%		(19,884	)		-7.7	%
Other assets		803,416			801,890			775,722			1,526			0.2	%		27,694			3.6	%
Total assets	$	9,777,814		$	9,423,578		$	8,851,711		$	354,236			3.8	%	$	926,103			10.5	%

Interest-bearing demand deposits	$	1,118,347		$	1,149,071		$	1,233,892		$	(30,724	)		-2.7	%	$	(115,545	)		-9.4	%
Savings deposits		1,815,672			1,709,670			1,755,048			106,002			6.2	%		60,624			3.5	%
Time deposits less than $100,000		1,485,680			1,478,753			1,577,753			6,927			0.5	%		(92,073	)		-5.8	%
Time deposits of $100,000 or more		1,074,873			1,045,377			1,030,527			29,496			2.8	%		44,346			4.3	%
Total interest-bearing deposits		5,494,572			5,382,871			5,597,220			111,701			2.1	%		(102,648	)		-1.8	%
Fed funds purchased and repos		674,175			809,822			417,338			(135,647	)		-16.8	%		256,837			61.5	%
Short-term borrowings		647,604			494,928			252,234			152,676			30.8	%		395,370			n/m
Long-term FHLB advances		58,333			-			-			58,333			n/m			58,333			n/m
Subordinated notes		49,744			49,736			49,712			8			0.0	%		32			0.1	%
Junior subordinated debt securities		70,104			70,104			70,104			-			0.0	%		-			0.0	%
Total interest-bearing liabilities		6,994,532			6,807,461			6,386,608			187,071			2.7	%		607,924			9.5	%
Noninterest-bearing deposits		1,470,822			1,433,361			1,390,843			37,461			2.6	%		79,979			5.8	%
Other liabilities		120,062			126,704			141,741			(6,642	)		-5.2	%		(21,679	)		-15.3	%
Total liabilities		8,585,416			8,367,526			7,919,192			217,890			2.6	%		666,224			8.4	%
Preferred equity		205,417			91,385			-			114,032			n/m			205,417			n/m
Common equity		986,981			964,667			932,519			22,314			2.3	%		54,462			5.8	%
Total shareholders' equity		1,192,398			1,056,052			932,519			136,346			12.9	%		259,879			27.9	%
Total liabilities and equity	$	9,777,814		$	9,423,578		$	8,851,711		$	354,236			3.8	%	$	926,103			10.5	%


										Linked Quarter						Year over Year
PERIOD END BALANCES	3/31/2009			12/31/2008			3/31/2008			$ Change			% Change			$ Change			% Change
Cash and due from banks	$	231,211		$	257,930		$	290,200		$	(26,719	)		-10.4	%	$	(58,989	)		-20.3	%
Fed funds sold and rev repos		8,014			23,401			16,022			(15,387	)		-65.8	%		(8,008	)		-50.0	%
Securities available for sale		1,613,047			1,542,841			585,746			70,206			4.6	%		1,027,301			n/m
Securities held to maturity		256,677			259,629			267,315			(2,952	)		-1.1	%		(10,638	)		-4.0	%
Loans held for sale		301,691			238,265			198,245			63,426			26.6	%		103,446			52.2	%
Loans		6,640,597			6,722,403			7,012,034			(81,806	)		-1.2	%		(371,437	)		-5.3	%
Allowance for loan losses		(100,358	)		(94,922	)		(81,818	)		(5,436	)		5.7	%		(18,540	)		22.7	%
Net Loans		6,540,239			6,627,481			6,930,216			(87,242	)		-1.3	%		(389,977	)		-5.6	%
Premises and equipment, net		157,068			156,811			151,469			257			0.2	%		5,599			3.7	%
Mortgage servicing rights		45,256			42,882			59,047			2,374			5.5	%		(13,791	)		-23.4	%
Goodwill		291,104			291,104			291,210			-			0.0	%		(106	)		0.0	%
Identifiable intangible assets		22,820			23,821			27,030			(1,001	)		-4.2	%		(4,210	)		-15.6	%
Other assets		308,587			326,744			280,653			(18,157	)		-5.6	%		27,934			10.0	%
Total assets	$	9,775,714		$	9,790,909		$	9,097,153		$	(15,195	)		-0.2	%	$	678,561			7.5	%

Deposits:
Noninterest-bearing	$	1,504,032		$	1,496,166		$	1,475,976		$	7,866			0.5	%	$	28,056			1.9	%
Interest-bearing		5,652,908			5,327,704			5,868,359			325,204			6.1	%		(215,451	)		-3.7	%
Total deposits		7,156,940			6,823,870			7,344,335			333,070			4.9	%		(187,395	)		-2.6	%
Fed funds purchased and repos		607,083			811,129			433,431			(204,046	)		-25.2	%		173,652			40.1	%
Short-term borrowings		448,380			730,958			93,453			(282,578	)		-38.7	%		354,927			n/m
Long-term FHLB advances		75,000			-			-			75,000			n/m			75,000			n/m
Subordinated notes		49,750			49,741			49,717			9			0.0	%		33			0.1	%
Junior subordinated debt securities		70,104			70,104			70,104			-			0.0	%		-			0.0	%
Other liabilities		168,089			126,641			168,772			41,448			32.7	%		(683	)		-0.4	%
Total liabilities		8,575,346			8,612,443			8,159,812			(37,097	)		-0.4	%		415,534			5.1	%
Preferred Stock		205,564			205,126			-			438			0.2	%		205,564			n/m
Common stock		11,955			11,944			11,938			11			0.1	%		17			0.1	%
Capital surplus		142,167			139,471			126,003			2,696			1.9	%		16,164			12.8	%
Retained earnings		845,779			836,642			810,369			9,137			1.1	%		35,410			4.4	%
Accum other comprehensive
loss, net of tax		(5,097	)		(14,717	)		(10,969	)		9,620			-65.4	%		5,872			-53.5	%
Total shareholders' equity		1,200,368			1,178,466			937,341			21,902			1.9	%		263,027			28.1	%
Total liabilities and equity	$	9,775,714		$	9,790,909		$	9,097,153		$	(15,195	)		-0.2	%	$	678,561			7.5	%

n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

MARCH 31, 2009

($ in thousands except per share data)

(unaudited)

	Quarter Ended									Linked Quarter						Year over Year
INCOME STATEMENTS	3/31/2009			12/31/2008			3/31/2008			$ Change			% Change			$ Change			% Change
Interest and fees on loans-FTE	$	92,382		$	101,694		$	119,641		$	(9,312	)		-9.2	%	$	(27,259	)		-22.8	%
Interest on securities-taxable		21,654			17,108			5,857			4,546			26.6	%		15,797			n/m
Interest on securities-tax exempt-FTE		1,834			1,891			2,086			(57	)		-3.0	%		(252	)		-12.1	%
Interest on fed funds sold and rev repos		19			57			179			(38	)		-66.7	%		(160	)		-89.4	%
Other interest income		313			368			572			(55	)		-14.9	%		(259	)		-45.3	%
Total interest income-FTE		116,202			121,118			128,335			(4,916	)		-4.1	%		(12,133	)		-9.5	%
Interest on deposits		22,540			26,818			43,363			(4,278	)		-16.0	%		(20,823	)		-48.0	%
Interest on fed funds pch and repos		364			1,178			3,073			(814	)		-69.1	%		(2,709	)		-88.2	%
Other interest expense		2,352			3,399			4,829			(1,047	)		-30.8	%		(2,477	)		-51.3	%
Total interest expense		25,256			31,395			51,265			(6,139	)		-19.6	%		(26,009	)		-50.7	%
Net interest income-FTE		90,946			89,723			77,070			1,223			1.4	%		13,876			18.0	%
Provision for loan losses		16,866			16,684			14,243			182			1.1	%		2,623			18.4	%
Net interest income after provision-FTE		74,080			73,039			62,827			1,041			1.4	%		11,253			17.9	%
Service charges on deposit accounts		12,568			14,044			12,564			(1,476	)		-10.5	%		4			0.0	%
Insurance commissions		7,422			6,783			8,256			639			9.4	%		(834	)		-10.1	%
Wealth management		5,555			6,583			7,198			(1,028	)		-15.6	%		(1,643	)		-22.8	%
General banking - other		5,407			5,576			5,788			(169	)		-3.0	%		(381	)		-6.6	%
Mortgage banking, net		10,907			4,393			11,056			6,514			n/m			(149	)		-1.3	%
Other, net		1,115			935			3,221			180			19.3	%		(2,106	)		-65.4	%
Nonint inc-excl sec gains, net		42,974			38,314			48,083			4,660			12.2	%		(5,109	)		-10.6	%
Security gains, net		30			12			433			18			n/m			(403	)		-93.1	%
Total noninterest income		43,004			38,326			48,516			4,678			12.2	%		(5,512	)		-11.4	%
Salaries and employee benefits		43,425			41,923			43,584			1,502			3.6	%		(159	)		-0.4	%
Services and fees		10,000			9,638			9,430			362			3.8	%		570			6.0	%
Net occupancy-premises		5,178			4,704			4,801			474			10.1	%		377			7.9	%
Equipment expense		4,166			4,183			4,074			(17	)		-0.4	%		92			2.3	%
Other expense		11,638			11,097			7,937			541			4.9	%		3,701			46.6	%
Total noninterest expense		74,407			71,545			69,826			2,862			4.0	%		4,581			6.6	%
Income before income taxes and tax eq adj		42,677			39,820			41,517			2,857			7.2	%		1,160			2.8	%
Tax equivalent adjustment		2,397			2,326			2,321			71			3.1	%		76			3.3	%
Income before income taxes		40,280			37,494			39,196			2,786			7.4	%		1,084			2.8	%
Income taxes		13,795			12,162			13,017			1,633			13.4	%		778			6.0	%
Net income		26,485			25,332			26,179			1,153			4.6	%		306			1.2	%

Preferred stock dividends		2,688			1,165			-			1,523			n/m			2,688			n/m
Accretion of preferred stock discount		438			188			-			250			n/m			438			n/m
Net income available to common shareholders	$	23,359		$	23,979		$	26,179		$	(620	)		-2.6	%	$	(2,820	)		-10.8	%


Per common share data
Earnings per share - basic	$	0.41		$	0.42		$	0.46		$	(0.01	)		-2.4	%	$	(0.05	)		-10.9	%

Earnings per share - diluted	$	0.41		$	0.42		$	0.46		$	(0.01	)		-2.4	%	$	(0.05	)		-10.9	%

Dividends per share	$	0.23		$	0.23		$	0.23		$	-			0.0	%	$	-			0.0	%

Weighted average common shares outstanding
Basic		57,350,874			57,324,710			57,283,240

Diluted		57,398,375			57,375,590			57,312,428

Period end common shares outstanding		57,378,318			57,324,737			57,296,449

OTHER FINANCIAL DATA
Return on common equity		9.60	%		9.89	%		11.29	%
Return on average tangible common equity		14.46	%		15.10	%		17.59	%
Return on equity		9.01	%		9.54	%		11.29	%
Return on assets		1.10	%		1.07	%		1.19	%
Interest margin - Yield - FTE		5.34	%		5.68	%		6.54	%
Interest margin - Cost		1.16	%		1.47	%		2.61	%
Net interest margin - FTE		4.18	%		4.20	%		3.92	%
Efficiency ratio		55.56	%		55.86	%		56.64	%
Full-time equivalent employees		2,589			2,607			2,627

COMMON STOCK PERFORMANCE
Market value-Close	$	18.38		$	21.59		$	22.28
Common book value	$	17.34		$	16.98		$	16.36
Tangible common book value	$	11.87		$	11.49		$	10.81

n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

MARCH 31, 2009

($ in thousands)

(unaudited)

	Quarter Ended									Linked Quarter						Year over Year
NONPERFORMING ASSETS	3/31/2009			12/31/2008			3/31/2008			$ Change			% Change			$ Change			% Change
Nonaccrual loans
Florida	$	83,789		$	75,092		$	49,654		$	8,697			11.6	%	$	34,135			68.7	%
Mississippi (1)		21,829			18,703			14,583			3,126			16.7	%		7,246			49.7	%
Tennessee (2)		5,763			3,638			6,550			2,125			58.4	%		(787	)		-12.0	%
Texas		23,122			16,605			7,207			6,517			39.2	%		15,915			n/m
Total nonaccrual loans		134,503			114,038			77,994			20,465			17.9	%		56,509			72.5	%
Other real estate
Florida		19,830			21,265			1,067			(1,435	)		-6.7	%		18,763			n/m
Mississippi (1)		9,932			6,113			1,741			3,819			62.5	%		8,191			n/m
Tennessee (2)		9,051			8,862			6,634			189			2.1	%		2,417			36.4	%
Texas		3,322			2,326			146			996			42.8	%		3,176			n/m
Total other real estate		42,135			38,566			9,588			3,569			9.3	%		32,547			n/m
Total nonperforming assets	$	176,638		$	152,604		$	87,582		$	24,034			15.7	%	$	89,056			n/m

LOANS PAST DUE OVER 90 DAYS
Loans held for investment	$	10,004		$	5,139		$	4,986		$	4,865			94.7	%	$	5,018			n/m

Loans HFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	21,128		$	18,095		$	15,868		$	3,033			16.8	%	$	5,260			33.1	%

	Quarter Ended									Linked Quarter						Year over Year
ALLOWANCE FOR LOAN LOSSES	3/31/2009			12/31/2008			3/31/2008			$ Change			% Change			$ Change			% Change
Beginning Balance	$	94,922		$	90,888		$	79,851		$	4,034			4.4	%	$	15,071			18.9	%
Provision for loan losses		16,866			16,684			14,243			182			1.1	%		2,623			18.4	%
Charge-offs		(14,015	)		(15,039	)		(15,176	)		1,024			-6.8	%		1,161			-7.7	%
Recoveries		2,585			2,389			2,900			196			8.2	%		(315	)		-10.9	%
Net charge-offs		(11,430	)		(12,650	)		(12,276	)		1,220			-9.6	%		846			-6.9	%
Ending Balance	$	100,358		$	94,922		$	81,818		$	5,436			5.7	%	$	18,540			22.7	%

PROVISION FOR LOAN LOSSES
Florida	$	10,733		$	6,491		$	9,557		$	4,242			65.4	%	$	1,176			12.3	%
Mississippi (1)		4,386			5,756			2,807			(1,370	)		-23.8	%		1,579			56.3	%
Tennessee (2)		1,621			1,461			779			160			11.0	%		842			n/m
Texas		126			2,976			1,100			(2,850	)		-95.8	%		(974	)		-88.5	%
Total provision for loan losses	$	16,866		$	16,684		$	14,243		$	182			1.1	%	$	2,623			18.4	%

NET CHARGE-OFFS
Florida	$	6,933		$	7,160		$	9,688		$	(227	)		-3.2	%	$	(2,755	)		-28.4	%
Mississippi (1)		3,455			4,387			1,574			(932	)		-21.2	%		1,881			n/m
Tennessee (2)		785			816			186			(31	)		-3.8	%		599			n/m
Texas		257			287			828			(30	)		-10.5	%		(571	)		-69.0	%
Total net charge-offs	$	11,430		$	12,650		$	12,276		$	(1,220	)		-9.6	%	$	(846	)		-6.9	%

CREDIT QUALITY RATIOS
Net charge offs/average loans		0.66	%		0.73	%		0.69	%
Provision for loan losses/average loans		0.98	%		0.96	%		0.80	%
Nonperforming loans/total loans (incl LHFS)		1.94	%		1.64	%		1.08	%
Nonperforming assets/total loans (incl LHFS)		2.54	%		2.19	%		1.21	%
Nonperforming assets/total loans (incl LHFS) +ORE		2.53	%		2.18	%		1.21	%
ALL/total loans (excl LHFS)		1.51	%		1.41	%		1.17	%
ALL-commercial/total commercial loans		1.95	%		1.79	%		1.52	%
ALL-consumer/total consumer and home mortgage loans		0.73	%		0.72	%		0.60	%
ALL/nonperforming loans		74.61	%		83.24	%		104.90	%
ALL/nonperforming loans (excl impaired loans)		137.47	%		166.07	%		142.72	%

CAPITAL RATIOS
Total equity/total assets		12.28	%		12.04	%		10.30	%
Common equity/total assets		10.18	%		9.94	%		10.30	%
Tangible equity/tangible assets		9.37	%		9.11	%		7.05	%
Tangible common equity/tangible assets		7.20	%		6.95	%		7.05	%
Tier 1 leverage ratio		10.17	%		10.42	%		8.12	%
Tier 1 risk-based capital ratio		13.34	%		13.01	%		9.42	%
Total risk-based capital ratio		15.28	%		14.95	%		11.21	%

(1) - Mississippi includes Central and Southern Mississippi Regions
(2) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

MARCH 31, 2009

($ in thousands)

(unaudited)

	Quarter Ended
QUARTERLY AVERAGE BALANCES	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Securities AFS-taxable	$	1,505,328		$	1,226,843		$	822,995		$	769,790		$	353,079
Securities AFS-nontaxable		43,429			40,708			39,886			35,869			36,241
Securities HTM-taxable		178,417			169,958			184,001			186,047			189,604
Securities HTM-nontaxable		67,308			71,843			74,937			76,940			81,559
Total securities		1,794,482			1,509,352			1,121,819			1,068,646			660,483
Loans (including loans held for sale)		6,981,921			6,908,296			6,927,270			7,080,495			7,177,233
Fed funds sold and rev repos		15,988			22,871			17,401			30,567			22,921
Other earning assets		40,485			49,197			37,323			41,481			36,958
Total earning assets		8,832,876			8,489,716			8,103,813			8,221,189			7,897,595
Allowance for loan losses		(97,986	)		(91,802	)		(88,643	)		(82,962	)		(80,998	)
Cash and due from banks		239,508			223,774			246,515			253,545			259,392
Other assets		803,416			801,890			810,449			782,986			775,722
Total assets	$	9,777,814		$	9,423,578		$	9,072,134		$	9,174,758		$	8,851,711

Interest-bearing demand deposits	$	1,118,347		$	1,149,071		$	1,222,087		$	1,258,281		$	1,233,892
Savings deposits		1,815,672			1,709,670			1,774,188			1,867,438			1,755,048
Time deposits less than $100,000		1,485,680			1,478,753			1,532,630			1,568,802			1,577,753
Time deposits of $100,000 or more		1,074,873			1,045,377			1,108,677			1,051,716			1,030,527
Total interest-bearing deposits		5,494,572			5,382,871			5,637,582			5,746,237			5,597,220
Fed funds purchased and repos		674,175			809,822			659,312			618,227			417,338
Short-term borrowings		647,604			494,928			156,880			202,778			252,234
Long-term FHLB advances		58,333			-			-			-			-
Subordinated notes		49,744			49,736			49,728			49,720			49,712
Junior subordinated debt securities		70,104			70,104			70,104			70,104			70,104
Total interest-bearing liabilities		6,994,532			6,807,461			6,573,606			6,687,066			6,386,608
Noninterest-bearing deposits		1,470,822			1,433,361			1,415,402			1,409,371			1,390,843
Other liabilities		120,062			126,704			136,229			134,237			141,741
Total liabilities		8,585,416			8,367,526			8,125,237			8,230,674			7,919,192
Preferred equity		205,417			91,385			-			-			-
Common equity		986,981			964,667			946,897			944,084			932,519
Total shareholders' equity		1,192,398			1,056,052			946,897			944,084			932,519
Total liabilities and equity	$	9,777,814		$	9,423,578		$	9,072,134		$	9,174,758		$	8,851,711




PERIOD END BALANCES	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Cash and due from banks	$	231,211		$	257,930		$	235,016		$	296,628		$	290,200
Fed funds sold and rev repos		8,014			23,401			14,782			23,901			16,022
Securities available for sale		1,613,047			1,542,841			907,629			908,949			585,746
Securities held to maturity		256,677			259,629			256,323			260,741			267,315
Loans held for sale		301,691			238,265			154,162			184,858			198,245
Loans		6,640,597			6,722,403			6,740,730			6,859,375			7,012,034
Allowance for loan losses		(100,358	)		(94,922	)		(90,888	)		(86,576	)		(81,818	)
Net Loans		6,540,239			6,627,481			6,649,842			6,772,799			6,930,216
Premises and equipment, net		157,068			156,811			156,298			154,026			151,469
Mortgage servicing rights		45,256			42,882			78,550			76,209			59,047
Goodwill		291,104			291,104			291,145			291,145			291,210
Identifiable intangible assets		22,820			23,821			24,887			25,958			27,030
Other assets		308,587			326,744			317,639			319,835			280,653
Total assets	$	9,775,714		$	9,790,909		$	9,086,273		$	9,315,049		$	9,097,153

Deposits:
Noninterest-bearing	$	1,504,032		$	1,496,166		$	1,526,374		$	1,443,553		$	1,475,976
Interest-bearing		5,652,908			5,327,704			5,411,304			5,680,130			5,868,359
Total deposits		7,156,940			6,823,870			6,937,678			7,123,683			7,344,335
Fed funds purchased and repos		607,083			811,129			592,818			748,137			433,431
Short-term borrowings		448,380			730,958			369,037			260,812			93,453
Long-term FHLB advances		75,000			-			-			-			-
Subordinated notes		49,750			49,741			49,733			49,725			49,717
Junior subordinated debt securities		70,104			70,104			70,104			70,104			70,104
Other liabilities		168,089			126,641			117,905			126,703			168,772
Total liabilities		8,575,346			8,612,443			8,137,275			8,379,164			8,159,812
Preferred Stock		205,564			205,126			-			-			-
Common stock		11,955			11,944			11,944			11,938			11,938
Capital surplus		142,167			139,471			128,617			126,881			126,003
Retained earnings		845,779			836,642			824,768			814,674			810,369
Accum other comprehensive
loss, net of tax		(5,097	)		(14,717	)		(16,331	)		(17,608	)		(10,969	)
Total shareholders' equity		1,200,368			1,178,466			948,998			935,885			937,341
Total liabilities and equity	$	9,775,714		$	9,790,909		$	9,086,273		$	9,315,049		$	9,097,153

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

MARCH 31, 2009

($ in thousands except per share data)

(unaudited)

	Quarter Ended
INCOME STATEMENTS	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Interest and fees on loans-FTE	$	92,382		$	101,694		$	105,706		$	109,023		$	119,641
Interest on securities-taxable		21,654			17,108			12,117			11,079			5,857
Interest on securities-tax exempt-FTE		1,834			1,891			1,946			1,943			2,086
Interest on fed funds sold and rev repos		19			57			98			168			179
Other interest income		313			368			407			475			572
Total interest income-FTE		116,202			121,118			120,274			122,688			128,335
Interest on deposits		22,540			26,818			32,860			36,881			43,363
Interest on fed funds pch and repos		364			1,178			3,123			3,019			3,073
Other interest expense		2,352			3,399			2,653			2,923			4,829
Total interest expense		25,256			31,395			38,636			42,823			51,265
Net interest income-FTE		90,946			89,723			81,638			79,865			77,070
Provision for loan losses		16,866			16,684			14,473			31,012			14,243
Net interest income after provision-FTE		74,080			73,039			67,165			48,853			62,827
Service charges on deposit accounts		12,568			14,044			13,886			13,223			12,564
Insurance commissions		7,422			6,783			9,007			8,394			8,256
Wealth management		5,555			6,583			6,788			7,031			7,198
General banking - other		5,407			5,576			5,813			6,053			5,788
Mortgage banking, net		10,907			4,393			4,323			6,708			11,056
Other, net		1,115			935			2,131			6,999			3,221
Nonint inc-excl sec gains, net		42,974			38,314			41,948			48,408			48,083
Security gains, net		30			12			2			58			433
Total noninterest income		43,004			38,326			41,950			48,466			48,516
Salaries and employee benefits		43,425			41,923			42,859			42,771			43,584
Services and fees		10,000			9,638			9,785			9,526			9,430
Net occupancy-premises		5,178			4,704			5,153			4,850			4,801
Equipment expense		4,166			4,183			4,231			4,144			4,074
Other expense		11,638			11,097			10,706			8,323			7,937
Total noninterest expense		74,407			71,545			72,734			69,614			69,826
Income before income taxes and tax eq adj		42,677			39,820			36,381			27,705			41,517
Tax equivalent adjustment		2,397			2,326			2,242			2,247			2,321
Income before income taxes		40,280			37,494			34,139			25,458			39,196
Income taxes		13,795			12,162			10,785			7,906			13,017
Net income		26,485			25,332			23,354			17,552			26,179

Preferred stock dividends		2,688			1,165			-			-			-
Accretion of preferred stock discount		438			188			-			-			-
Net income available to common shareholders	$	23,359		$	23,979		$	23,354		$	17,552		$	26,179

Per common share data
Earnings per share - basic	$	0.41		$	0.42		$	0.41		$	0.31		$	0.46

Earnings per share - diluted	$	0.41		$	0.42		$	0.41		$	0.31		$	0.46

Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23

Weighted average common shares outstanding
Basic		57,350,874			57,324,710			57,298,710			57,296,449			57,283,240

Diluted		57,398,375			57,375,590			57,337,342			57,335,393			57,312,428

Period end common shares outstanding		57,378,318			57,324,737			57,324,627			57,296,449			57,296,449


OTHER FINANCIAL DATA
Return on common equity		9.60	%		9.89	%		9.81	%		7.48	%		11.29	%
Return on average tangible common equity		14.46	%		15.10	%		15.16	%		11.70	%		17.59	%
Return on equity		9.01	%		9.54	%		9.81	%		7.48	%		11.29	%
Return on assets		1.10	%		1.07	%		1.02	%		0.77	%		1.19	%
Interest margin - Yield - FTE		5.34	%		5.68	%		5.90	%		6.00	%		6.54	%
Interest margin - Cost		1.16	%		1.47	%		1.90	%		2.10	%		2.61	%
Net interest margin - FTE		4.18	%		4.20	%		4.01	%		3.91	%		3.92	%
Efficiency ratio		55.56	%		55.86	%		58.85	%		56.64	%		56.64	%
Full-time equivalent employees		2,589			2,607			2,623			2,637			2,627


COMMON STOCK PERFORMANCE
Market value-Close	$	18.38		$	21.59		$	20.74		$	17.65		$	22.28
Common book value	$	17.34		$	16.98		$	16.55		$	16.33		$	16.36
Tangible common book value	$	11.87		$	11.49		$	11.04		$	10.80		$	10.81

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

MARCH 31, 2009

($ in thousands)

(unaudited)

	Quarter Ended
NONPERFORMING ASSETS	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Nonaccrual loans
Florida	$	83,789		$	75,092		$	71,125		$	70,484		$	49,654
Mississippi (1)		21,829			18,703			12,727			12,572			14,583
Tennessee (2)		5,763			3,638			4,012			5,216			6,550
Texas		23,122			16,605			17,418			7,039			7,207
Total nonaccrual loans		134,503			114,038			105,282			95,311			77,994
Other real estate
Florida		19,830			21,265			18,265			10,398			1,067
Mississippi (1)		9,932			6,113			6,062			5,258			1,741
Tennessee (2)		9,051			8,862			7,924			6,778			6,634
Texas		3,322			2,326			214			438			146
Total other real estate		42,135			38,566			32,465			22,872			9,588
Total nonperforming assets	$	176,638		$	152,604		$	137,747		$	118,183		$	87,582

LOANS PAST DUE OVER 90 DAYS
Loans held for investment	$	10,004		$	5,139		$	3,622		$	3,056		$	4,986

Loans HFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	21,128		$	18,095		$	20,332		$	15,809		$	15,868


	Quarter Ended
ALLOWANCE FOR LOAN LOSSES	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Beginning Balance	$	94,922		$	90,888		$	86,576		$	81,818		$	79,851
Provision for loan losses		16,866			16,684			14,473			31,012			14,243
Charge-offs		(14,015	)		(15,039	)		(12,732	)		(28,820	)		(15,176	)
Recoveries		2,585			2,389			2,571			2,566			2,900
Net charge-offs		(11,430	)		(12,650	)		(10,161	)		(26,254	)		(12,276	)
Ending Balance	$	100,358		$	94,922		$	90,888		$	86,576		$	81,818

PROVISION FOR LOAN LOSSES
Florida	$	10,733		$	6,491		$	3,167		$	24,145		$	9,557
Mississippi (1)		4,386			5,756			8,476			3,667			2,807
Tennessee (2)		1,621			1,461			27			2,440			779
Texas		126			2,976			2,803			760			1,100
Total provision for loan losses	$	16,866		$	16,684		$	14,473		$	31,012		$	14,243

NET CHARGE-OFFS
Florida	$	6,933		$	7,160		$	3,779		$	22,064		$	9,688
Mississippi (1)		3,455			4,387			4,515			4,214			1,574
Tennessee (2)		785			816			1,291			48			186
Texas		257			287			576			(72	)		828
Total net charge-offs	$	11,430		$	12,650		$	10,161		$	26,254		$	12,276

CREDIT QUALITY RATIOS
Net charge offs/average loans		0.66	%		0.73	%		0.58	%		1.49	%		0.69	%
Provision for loan losses/average loans		0.98	%		0.96	%		0.83	%		1.76	%		0.80	%
Nonperforming loans/total loans (incl LHFS)		1.94	%		1.64	%		1.53	%		1.35	%		1.08	%
Nonperforming assets/total loans (incl LHFS)		2.54	%		2.19	%		2.00	%		1.68	%		1.21	%
Nonperforming assets/total loans (incl LHFS) +ORE		2.53	%		2.18	%		1.99	%		1.67	%		1.21	%
ALL/total loans (excl LHFS)		1.51	%		1.41	%		1.35	%		1.26	%		1.17	%
ALL-commercial/total commercial loans		1.95	%		1.79	%		1.76	%		1.67	%		1.52	%
ALL-consumer/total consumer and home mortgage loans		0.73	%		0.72	%		0.64	%		0.60	%		0.60	%
ALL/nonperforming loans		74.61	%		83.24	%		86.33	%		90.84	%		104.90	%
ALL/nonperforming loans (excl impaired loans)		137.47	%		166.07	%		145.21	%		173.64	%		142.72	%

CAPITAL RATIOS
Total equity/total assets		12.28	%		12.04	%		10.44	%		10.05	%		10.30	%
Common equity/total assets		10.18	%		9.94	%		10.44	%		10.05	%		10.30	%
Tangible equity/tangible assets		9.37	%		9.11	%		7.22	%		6.88	%		7.05	%
Tangible common equity/tangible assets		7.20	%		6.95	%		7.22	%		6.88	%		7.05	%
Tier 1 leverage ratio		10.17	%		10.42	%		8.11	%		7.87	%		8.12	%
Tier 1 risk-based capital ratio		13.34	%		13.01	%		9.86	%		9.58	%		9.42	%
Total risk-based capital ratio		15.28	%		14.95	%		11.80	%		11.46	%		11.21	%


(1) - Mississippi includes Central and Southern Mississippi Regions
(2) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions

See Notes to Consolidated Financials

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

MARCH 31, 2009

($ in thousands)

(unaudited)

Note 1 – Issuance of Preferred Stock

On November 21, 2008, Trustmark issued 215,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, (no par) liquidation preference $1,000 per share, (Senior Preferred) to the United States Department of the Treasury (Treasury) in a private placement transaction as part of the Troubled Assets Relief Program Capital Purchase Program, a voluntary initiative for U.S. financial institutions designed to support the economy by increasing financing to businesses and consumers. In the same transaction, Trustmark also issued to the Treasury a warrant to purchase 1,647,931 shares of Trustmark’s common stock at an exercise price of $19.57 per share.

The Senior Preferred pays cumulative dividends at the rate of 5.00% of the liquidation preference per year, payable on February 15, May 15, August 15 and November 15 of each year, in arrears, until, but excluding, February 15, 2014, and from that date thereafter at the rate of 9.00% of the liquidation preference per year. The term of the Senior Preferred is perpetual. Trustmark may redeem the Senior Preferred subject to the consent of Treasury and Trustmark’s primary federal banking regulator, the Board of Governors of the Federal Reserve System. Any redemption of the Senior Preferred will be at $1,000 per share plus any accrued and unpaid dividends.

The Senior Preferred stock was recorded at issue for $204.9 million, with the remainder of the $10.1 million in cash proceeds recorded as warrants in Capital Surplus. This allocation was derived by a third-party evaluation of the fair value of the Senior Preferred and warrant at the time of issuance. The cash proceeds were then apportioned to the Senior Preferred and the warrants using their relative fair values. The basis of the Senior Preferred will be accreted to the $215 million redemption value on a constant yield method over five years, and the accretion will be represented as an additional carrying cost of the equity. The warrant is not subject to mark-to-market accounting, and will be carried in Capital Surplus at its original basis until exercise or expiration. The warrant’s effect on shares outstanding will be included in dilutive shares using the treasury stock method.

Note 2 - Securities Available for Sale and Held to Maturity

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity ($ in thousands):

	3/31/2009		12/31/2008		9/30/2008		6/30/2008		3/31/2008
SECURITIES AVAILABLE FOR SALE
U.S. Treasury and other U.S. Government agencies	$	26,019	$	31,892	$	7,547	$	6,042	$	7,075
Obligations of states and political subdivisions		125,366		98,653		39,132		40,678		32,659
Mortgage-backed securities
Pass-through securities:
Guaranteed by GNMA		10,658		8,726		6,754		7,049		4,135
Issued by FNMA and FHLMC		79,007		19,186		15,821		10,894		11,225
Other mortgage-backed securities:
Issued or guaranteed by FNMA, FHLMC, or GNMA		1,363,928		1,376,514		827,246		833,039		513,347
Corporate debt securities		8,069		7,870		11,129		11,247		17,305
Total securities available for sale	$	1,613,047	$	1,542,841	$	907,629	$	908,949	$	585,746

SECURITIES HELD TO MATURITY
Obligations of states and political subdivisions	$	95,799	$	102,901	$	98,799	$	102,212	$	107,628
Mortgage-backed securities
Pass-through securities:
Guaranteed by GNMA		5,325		-		-		-		-
Other mortgage-backed securities:
Issued or guaranteed by FNMA, FHLMC, or GNMA		155,553		156,728		157,524		158,529		159,559
Other securities		-		-		-		-		128
Total securities held to maturity	$	256,677	$	259,629	$	256,323	$	260,741	$	267,315

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of approximately 89% of the portfolio in U.S. Treasury, U.S. Government agency-backed obligations and other AAA rated securities. None of the securities in the portfolio are considered to be sub-prime. Furthermore, outside of membership in the Federal Home Loan Bank of Dallas, Federal Reserve Bank and Depository Trust and Clearing Corporation, Trustmark does not hold any equity investment in government sponsored entities.

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

MARCH 31, 2009

($ in thousands)

(unaudited)

Note 3 – Loan Composition

LOANS BY TYPE	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Loans secured by real estate:
Construction, land development and other land loans	$	1,000,020		$	1,028,788		$	1,062,319		$	1,158,549		$	1,212,052
Secured by 1-4 family residential properties		1,601,600			1,524,061			1,561,024			1,633,021			1,660,148
Secured by nonfarm, nonresidential properties		1,425,937			1,422,658			1,345,624			1,300,753			1,315,449
Other real estate secured		184,204			186,915			175,877			148,588			160,373
Commercial and industrial loans		1,258,887			1,305,938			1,328,035			1,313,620			1,286,578
Consumer loans		804,958			895,046			947,113			994,475			1,056,346
Other loans		364,991			358,997			320,738			310,369			321,088
Loans		6,640,597			6,722,403			6,740,730			6,859,375			7,012,034
Allowance for loan losses		(100,358	)		(94,922	)		(90,888	)		(86,576	)		(81,818	)
Net Loans	$	6,540,239		$	6,627,481		$	6,649,842		$	6,772,799		$	6,930,216







	March 31 ,2009
LOAN COMPOSITION BY REGION	Total			Florida			Mississippi (Central and Southern Regions)			Tennessee (Memphis, TN and Northern MS Regions)			Texas
Loans secured by real estate:
Construction, land development and other land loans	$	1,000,020		$	276,315		$	382,245		$	81,293		$	260,167
Secured by 1-4 family residential properties		1,601,600			93,911			1,305,295			170,656			31,738
Secured by nonfarm, nonresidential properties		1,425,937			180,649			797,064			211,010			237,214
Other real estate secured		184,204			12,747			142,104			10,877			18,476
Commercial and industrial loans		1,258,887			18,049			897,604			59,932			283,302
Consumer loans		804,958			2,531			761,984			29,928			10,515
Other loans		364,991			21,823			313,991			16,041			13,136
Loans	$	6,640,597		$	606,025		$	4,600,287		$	579,737		$	854,548








CONSTRUCTION AND LAND DEVELOPMENT LOANS BY REGION
Lots	$	118,776		$	74,002		$	27,832		$	5,454		$	11,488
Development		215,508			41,769			84,068			11,525			78,146
Unimproved land		286,171			99,063			106,399			33,785			46,924
1-4 family construction		169,421			25,878			78,388			10,694			54,461
Other construction		210,144			35,603			85,558			19,835			69,148
Construction and land development loans	$	1,000,020		$	276,315		$	382,245		$	81,293		$	260,167

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

MARCH 31, 2009

($ in thousands)

(unaudited)

								Classified (3)
FLORIDA CREDIT QUALITY	Total Loans		Criticized Loans (1)		Special Mention (2)			Accruing		Nonimpaired Nonaccrual		Impaired Nonaccrual (4)
Construction and land development loans:
Lots	$	74,002	$	24,971	$	4,635		$	7,278	$	10,453	$	2,605
Development		41,769		16,910		-			-		5,566		11,344
Unimproved land		99,063		59,461		24,716			11,909		3,455		19,381
1-4 family construction		25,878		11,777		-			1,651		539		9,587
Other construction		35,603		21,992		2,749			9,320		3,314		6,609
Construction and land development loans		276,315		135,111		32,100			30,158		23,327		49,526
Commercial, commercial real estate and consumer		329,710		46,441		17,891			17,614		8,335		2,601

Total Florida loans	$	606,025	$	181,552	$	49,991		$	47,772	$	31,662	$	52,127


FLORIDA CREDIT QUALITY	Total Loans Less Impaired Loans		Loan Loss Reserves		Loan Loss Reserve % of Non-Impaired Loans
Construction and land development loans:
Lots	$	71,397	$	3,899		5.46	%
Development		30,425		4,050		13.31	%
Unimproved land		79,682		5,046		6.33	%
1-4 family construction		16,291		487		2.99	%
Other construction		28,994		3,505		12.09	%
Construction and land development loans		226,789		16,987		7.49	%
Commercial, commercial real estate and consumer		327,109		7,878		2.41	%

Total Florida loans	$	553,898	$	24,865		4.49	%

(1)	Criticized loans equal all special mention and classified loans.

(2)	Special mention loans exhibit potential credit weaknesses that, if not resolved, may ultimately result in a more severe classification.

(3)	Classified loans include those loans identified by management as exhibiting well-defined credit weaknesses that may jeopardize repayment in full of the debt.

(4)

All nonaccrual loans over $1 million are individually assessed for impairment in accordance with SFAS No. 114. Impaired loans have been determined to be collateral dependent and assessed using a fair value approach. Fair value estimates begin with appraised values, normally from recently received and reviewed appraisals. Appraised values are adjusted down for costs associated with asset disposal. When a loan is deemed to be impaired, the full difference between book value and the most likely estimate of the asset’s net realizable value is charged off.

LOAN COMPOSITION -FLORIDA	3/31/2009		12/31/2008		9/30/2008		6/30/2008		3/31/2008
Loans secured by real estate:
Construction, land development and other land loans	$	276,315	$	294,473	$	301,509	$	321,864	$	371,187
Secured by 1-4 family residential properties		93,911		91,559		90,790		93,946		95,664
Secured by nonfarm, nonresidential properties		180,649		179,123		176,512		178,869		179,658
Other real estate secured		12,747		12,632		12,518		12,648		12,388
Commercial and industrial loans		18,049		18,814		18,305		22,739		22,850
Consumer loans		2,531		3,206		3,008		2,905		2,604
Other loans		21,823		18,505		14,833		12,704		8,201
Loans	$	606,025	$	618,312	$	617,475	$	645,675	$	692,552

CONSTRUCTION AND LAND DEVELOPMENT LOANS - FLORIDA
Lots	$	74,002	$	76,849	$	82,472	$	84,936	$	91,163
Development		41,769		35,927		37,578		41,098		52,009
Unimproved land		99,063		114,232		111,548		120,422		134,428
1-4 family construction		25,878		29,246		29,265		33,151		46,170
Other construction		35,603		38,219		40,646		42,257		47,417
Construction and land development loans	$	276,315	$	294,473	$	301,509	$	321,864	$	371,187

TRUSTMARK CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIALS

MARCH 31, 2009

($ in thousands)

(unaudited)

Note 4 – Mortgage Banking

Trustmark utilizes derivative instruments to offset changes in the fair value of mortgage servicing rights (MSR) attributable to changes in interest rates. Changes in the fair value of the derivative instrument are recorded in mortgage banking income, net and are offset by the changes in the fair value of MSR, as shown in the accompanying table. MSR fair values represent the effect of present value decay and the effect of changes in interest rates. Ineffectiveness of hedging MSR fair value is measured by comparing total hedge cost to the fair value of the MSR asset attributable to market changes. The impact of this strategy resulted in a net positive ineffectiveness of $2.1 million and $7.4 million for the quarters ended March 31, 2009 and 2008, respectively. The accompanying table shows that the MSR value declined $352 thousand for the quarter ended March 31, 2009. This change is due to a slight decline in mortgage rates. More than offsetting the MSR change is a $2.4 million increase in the value of derivative instruments. Although 10-year Treasury yields increased during the quarter, income produced by the steep yield curve and option premium more than offset the market value decrease of the derivative instruments.

The following table illustrates the components of mortgage banking income included in noninterest income in the accompanying income statements:

	Quarter Ended
	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Mortgage servicing income, net	$	4,001		$	4,188		$	4,002		$	3,804		$	3,747
Change in fair value-MSR from market changes		(352	)		(36,846	)		(903	)		13,104			(10,193	)
Change in fair value of derivatives		2,407			37,160			1,680			(10,453	)		17,599
Change in fair value-MSR from runoff		(2,643	)		(2,101	)		(2,152	)		(2,303	)		(2,430	)
Gain on sales of loans		4,004			473			1,875			2,542			1,078
Other, net		3,490			1,519			(179	)		14			1,255
Mortgage banking, net	$	10,907		$	4,393		$	4,323		$	6,708		$	11,056

Note 5 – Earning Assets and Interest-Bearing Liabilities

The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:

	Quarter Ended
	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Securities – Taxable		5.22	%		4.87	%		4.79	%		4.66	%		4.34	%
Securities – Nontaxable		6.72	%		6.68	%		6.74	%		6.93	%		7.12	%
Securities – Total		5.31	%		5.01	%		4.99	%		4.90	%		4.84	%
Loans		5.37	%		5.86	%		6.07	%		6.19	%		6.70	%
FF Sold & Rev Repo		0.48	%		0.99	%		2.24	%		2.21	%		3.14	%
Other Earning Assets		3.14	%		2.98	%		4.34	%		4.61	%		6.22	%
Total Earning Assets		5.34	%		5.68	%		5.90	%		6.00	%		6.54	%

Interest-bearing Deposits		1.66	%		1.98	%		2.32	%		2.58	%		3.12	%
FF Pch & Repo		0.22	%		0.58	%		1.88	%		1.96	%		2.96	%
Borrowings		1.16	%		2.20	%		3.81	%		3.64	%		5.22	%
Total Interest-bearing Liabilities		1.46	%		1.83	%		2.34	%		2.58	%		3.23	%

Net interest margin		4.18	%		4.20	%		4.01	%		3.91	%		3.92	%

During the first quarter 2009, the net interest margin fell 2 basis points to 4.18% due to the normalization of the spread between LIBOR and overnight Federal Funds as well as continued repricing of fixed rate assets, mostly offset by a decline in liability costs.

During the fourth quarter of 2008, Trustmark’s net interest margin expanded to 4.20%, up 19 basis points from the prior quarter. This increase is primarily attributable to the abnormal spread between one month LIBOR and the overnight Fed Funds rate during the quarter that has since dissipated, as well as an increased level of fixed rate securities primarily funded by shorter, floating rate liabilities.